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Examveda

The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as __________.

A. Public issue

B. Right Issue

C. Private placement

D. Bought-Out-Deal

Answer: Option B

Solution(By Examveda Team)

The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as Right Issue. A rights issue is an invitation to existing shareholders to purchase additional new shares in the company.

This Question Belongs to Commerce >> Financial Management

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